Real Estate Market on Upswing

(Boonton, NJ, April 20, 2017) — It’s nothing like the housing boom of 12 years ago,
but today’s real estate market is on
a decided upswing, one that has rewarded the nation’s
largest brokers with higher revenue and profits.

But, as Realogy Chief Executive Richard Smith
indicates, this boom faces a number of headwinds,
reflecting the muted nature of this housing recovery.

Among the challenges real estate brokers face in
today’s bull market:

Intense competition. One hundred percent companies and
technology-driven brokerages such as Redfin are
elbowing their way into increased market share.

Split pressure. As the joke goes, agents won’t be
happy until brokers cough up unlimited services and 100
percent of the commission. Until they land that deal,
they’ll keep negotiating for better terms or
switching brokers.

A constantly shifting market. Now that distressed sales
have disappeared and the heat has left the high-end
market, the momentum has shifted to entry-level homes.

Rising mortgage rates. Mortgage rates spiked after the
presidential election, then flattened. However, most
industry experts expect rates to continue to rise
through 2017.